logo
  Join        Login             Stock Quote

Netapp (NTAP) 2Q Earnings Drop 33.8 Pct, Yet Beat Estimates; Shares Rise

 November 14, 2012 04:26 PM
 


(By Balaseshan) NetApp Inc. (NASDAQ: NTAP), a provider of storage and data management solutions, reported a 33.8% drop in quarterly earnings due to higher costs and expenses. Results beat Street's expectations, sending its shares up 9.10% in aftermarket.

Earnings for the second quarter were $109.6 million or $0.30 per share, down from $165.6 million or $0.44 per share last year. Adjusted earnings per share (EPS) fell to $0.51 from $0.63.

Revenues increased 2.3% to $1.541 billion.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.48 per share on revenue of $1.54 billion for the second quarter.

[Related -Cisco Systems, Inc. (NASDAQ:CSCO): What Cisco May Add To Next-Gen UCS?]

Product revenue declined 2% to $995.8 million, while revenue from software entitlements and maintenance grew 10.8% to $219.4 million. Service revenue increased 11.3% to $326.0 million.

Looking ahead into the third quarter, the company expects adjusted earnings of $0.53 to $0.58 per share and revenue of $1.575 billion to $1.675 billion, while Street predicts profit of $0.54 per share on revenue of $1.62 billion.

NetApp estimates that share count for the third quarter to decrease to about 365 million shares.

NetApp also said it will continue its share repurchase program with an additional $1.5 billion authorized. Under this program, NetApp can purchase shares of its outstanding common stock through open market and in privately negotiated transactions at prices deemed appropriate by management. The purchases will be funded from available working capital.

[Related -Why I Remain Bullish On Ezchip Semiconductor]

NTAP closed Wednesday's regular session up 3.01% at $27.12. The stock has been trading between $26.26 and $46.80 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHow the Chinese Slowdown Will Impact Your Investments

Most countries would find a quarterly growth rate of 7.3% a cause for a read on...

article imageHow To Profit From Foreign Investment In Real Estate

Though investors don't always capitalize on it, history has a way of repeating itself. In fact, when I saw read on...

article imageAnother Round Of Upbeat US Macro Reports

The US economy grew faster than expected in this year’s third quarter, according to this morning’s read on...

article imageDistinguishing The Fed's Securities Purchases From Monetary Expansion

There has been a bit of confusion about what today's FOMC announcement means with respect to Quantitative read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.